Yeong Guan Energy Technology Group Co (YGG, 永冠能源), which produces advanced casting components for specialized applications, is expected to report a 10 percent annual increase in net income for last quarter due to growing contributions in the wind turbine business, HSBC Securities Taiwan Corp said.
YGG’s consolidated revenue in the January-to-March quarter increased 2.68 percent annually to NT$1.91 billion (US$59.17 million), as castings shipments grew in line with the company’s expectations, gaining 9.8 percent year-on-year to 36,599 tonnes last quarter.
HSBC attributed the high shipments in the last quarter to high utilization rates of its plants, with 108 percent usage in January, 54 percent in February — due to the Lunar New Year holiday — and 115 percent in March, saying that shipments performance resulted in a positive outlook for the company’s margin performances.
“We expect gross margin expansion in the second quarter this year driven by continued product mix improvement,” HSBC analysts Chloe Wu (吳家瑋) and John Chung said in a report on Thursday last week.
HSBC forecast the company’s net profit last quarter would grow 10.3 percent annually to NT$257 million, or earnings per share of NT$1.96.
YGG is expected to announce its first-quarter earnings result on Friday.
The company, whose products are used in the fields of energy, industrial machinery, injection molding and medical equipment, said its wind business sales contributions increased to 63 percent in the last quarter, as global demand led by larger wind turbine components continues to grow.
YGG’s aim is to increase the revenue contribution from its wind business from last year’s 59 percent to between 70 percent and 85 percent this year, the firm told investors last month.
The company also plans to lower the sales contribution from its non-energy segment to between 15 percent and 30 percent this year from last year’s 41 percent, it said.
After completion of a new plant in Jiangsu, China, at the beginning of the year, the company raised its shipment target from 165,000 tonnes to between 175,000 and 180,000 tonnes of castings per year, increasing by 15 percent annually.
YGG said it expects its castings shipments for offshore wind turbines with a capacity of more than 3 megawatts to make up 40 percent of its total shipments for the first time this year, the company said.
The company approved plans to distribute a cash dividend of NT$8.5 per share based on its earnings per share of NT$12.24 last year. That translates into a payout ratio of 69.44 percent, higher than last year’s 61.3 percent.
YGG’s planned dividend distribution suggests a yield of 4.06 percent, based on the company’s closing price of NT$209.5 in Taipei trading on Friday.
Intel Corp chief executive officer Lip-Bu Tan (陳立武) is expected to meet with Taiwanese suppliers next month in conjunction with the opening of the Computex Taipei trade show, supply chain sources said on Monday. The visit, the first for Tan to Taiwan since assuming his new post last month, would be aimed at enhancing Intel’s ties with suppliers in Taiwan as he attempts to help turn around the struggling US chipmaker, the sources said. Tan is to hold a banquet to celebrate Intel’s 40-year presence in Taiwan before Computex opens on May 20 and invite dozens of Taiwanese suppliers to exchange views
Application-specific integrated circuit designer Faraday Technology Corp (智原) yesterday said that although revenue this quarter would decline 30 percent from last quarter, it retained its full-year forecast of revenue growth of 100 percent. The company attributed the quarterly drop to a slowdown in customers’ production of chips using Faraday’s advanced packaging technology. The company is still confident about its revenue growth this year, given its strong “design-win” — or the projects it won to help customers design their chips, Faraday president Steve Wang (王國雍) told an online earnings conference. “The design-win this year is better than we expected. We believe we will win
Quanta Computer Inc (廣達) chairman Barry Lam (林百里) is expected to share his views about the artificial intelligence (AI) industry’s prospects during his speech at the company’s 37th anniversary ceremony, as AI servers have become a new growth engine for the equipment manufacturing service provider. Lam’s speech is much anticipated, as Quanta has risen as one of the world’s major AI server suppliers. The company reported a 30 percent year-on-year growth in consolidated revenue to NT$1.41 trillion (US$43.35 billion) last year, thanks to fast-growing demand for servers, especially those with AI capabilities. The company told investors in November last year that
Power supply and electronic components maker Delta Electronics Inc (台達電) yesterday said it plans to ship its new 1 megawatt charging systems for electric trucks and buses in the first half of next year at the earliest. The new charging piles, which deliver up to 1 megawatt of charging power, are designed for heavy-duty electric vehicles, and support a maximum current of 1,500 amperes and output of 1,250 volts, Delta said in a news release. “If everything goes smoothly, we could begin shipping those new charging systems as early as in the first half of next year,” a company official said. The new
RSS